Stelux sales slump as network trimmed
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Stelux Holdings, parent of the City Chain watch retail business, says its sales in the December quarter were down 32.6 percent, or by HK$198.98 million (US$25.6 million).
The company closed about 15 percent of its stores, primarily in Hong Kong, as social unrest continued throughout the city, affecting sales to both locals and visitors.
While the company did not break out figures for Hong Kong, it said revenue for Greater China was down by 46.1 percent in the quarter, to $110.3 million. Sales in Southeast Asian stores, which comprise about 40 percent of the business, slipped by 2 percent.
Total group sales were $650.5 million, compared with $895.8 million in the same quarter a year earlier.
Questions & Answers
Q.Which specific retail business does Stelux Holdings operate?
Which specific retail business does Stelux Holdings operate?
Stelux Holdings is the parent company of the City Chain watch retail business. This means City Chain is the primary brand through which Stelux operates its watch sales.
Q.What was the main reason cited for Stelux Holdings' sales decline in the December quarter?
What was the main reason cited for Stelux Holdings' sales decline in the December quarter?
The primary reason for the sales slump was the ongoing social unrest in Hong Kong. This affected sales to both local residents and visitors, leading to store closures and reduced revenue.
Q.How did sales performance differ between Greater China and Southeast Asia for Stelux Holdings?
How did sales performance differ between Greater China and Southeast Asia for Stelux Holdings?
Sales in Greater China saw a significant decline of 46.1 percent in the quarter. In contrast, sales in Southeast Asian stores, which represent 40 percent of the business, only slipped by 2 percent.